We live in an expanding global economy. Over the past decade, world merchandise trade has grown by 4.3% compared to GDP, which has risen by only 2.5%, and world merchandise exports grew 4 times faster than GDP in 2010*.Non-US companies exhibiting at Cosmoprof North America, the beauty industry’s largest business-to-business trade event in the US, represented nearly one-third of total exhibitors in 2011**.

The Professional Beauty Association (PBA) conducted a brief poll last month to find out what you think about import/export and related activities. We asked how many of you import or export, and if not, are you interested in learning more about it? What are your challenges in this arena? Do you feel you have enough knowledge to operate effectively on the international business front?

Question 1: Do you currently import or export products?

Answer Options

Response

Yes

50.0%

No

33.3%

Not yet, but we want to

16.7%

Used to, but no longer

0.0%

Question 2: Do you feel like you have enough information to effectively conduct your import/export business?

Answer Options

Response

Yes

33.3%

No

50.0%

Do not plan to import/export

16.7%

Question 3: What import/export activities present the most challenge(s)?

Analysis of responses correspond to Question 3: keeping apprised of “licensing and regulations” for each country or entity cited most often. Answers in ranked order follow:

Licensing/Regulations

Finding Customers

Human Resources/Employee to Manage the Process

Understanding the Process

Trust (protecting yourself, insuring against loss)

Results of the survey indicate that international trade can be confusing and presents a multitude of hurdles, with a full 50% of respondents indicating that they do not have enough knowledge to effectively conduct their import/export business. Keeping up with licensing and regulatory requirements was identified by a third of respondents as the greatest challenge.

Where can beauty industry professionals turn for help? See “Going Global“ in this month’s issue for real tools you can use to gain knowledge and negotiate the challenges of going global.